Q4 2024 Interpump Group SpA Earnings Call Transcript
Key Points
- Interpump Group SpA (IPGLF) achieved a record free cash flow of EUR 205 million, demonstrating strong cash generation capabilities even in adverse market conditions.
- The company maintained a resilient EBITDA margin of 22% despite a 9% organic sales drop, showcasing its ability to protect profitability amidst volatility.
- The Water-Jetting division showed strong performance with a sales increase of over 7%, driven by late-cycle nature and specific product categories like pressure pumps.
- CapEx normalization is underway, with a reduction in absolute terms by around 20%, indicating disciplined capital expenditure management.
- Recent acquisitions, such as Alfa Valvole, have exceeded expectations, contributing to the group's growth and diversification strategy with high profitability.
- The Hydraulics division experienced a significant sales decline of around 14% organically, with a notable drop in profitability due to inventory adjustments.
- Sales guidance for 2025 is conservative, with expectations ranging from a 5% decline to a 1% increase, reflecting ongoing market uncertainties.
- The Hydraulics division continues to face challenges, particularly in mobile hydraulics sectors like agriculture and construction, with no immediate recovery in sight.
- Inventory levels remain high due to sales declines, and while normalization is planned, it may take time to achieve pre-COVID levels.
- The company faces difficulties in maintaining profitability if sales decrease further, especially in the Hydraulics division, which could impact overall financial performance.
Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Interpump Fourth Quarter 2024 Financial Results Conference Call. (Operator Instructions)
At this time, I would like to turn the conference over to Elisabetta Cugnasca, Head of IR. Please go ahead, madam.
Thank you. I am Elisabetta Cugnasca, Head of Investor Relations of Interpump Group. Good afternoon or good morning, depending on your time zone, and welcome to Interpump Fourth Quarter 2024 Financial Results Conference Call. As usual, I must draw your attention to the disclaimer slide inserted into the annex part of the presentation that I hope you were able to download from our website. Now I would like to leave the floor to Mr.
Marasi, Group Chief Executive Officer.
Thank you, Ms. Cugnasca, thanks to all of you for joining our call. In every quarter of last year, I
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